Super Micro Computer (NASDAQ:SMCI) Issues Earnings Results

Super Micro Computer (NASDAQ:SMCI) issued its quarterly earnings results on Tuesday. The company reported $1.70 earnings per share for the quarter, topping the consensus estimate of $0.92 by $0.78, FiscalAI reports. Super Micro Computer had a return on equity of 17.49% and a net margin of 3.70%.The business had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. During the same quarter last year, the company earned $0.31 earnings per share. The company’s quarterly revenue was up 93.2% on a year-over-year basis. Super Micro Computer updated its Q1 2027 guidance to 1.010-1.100 EPS.

Here are the key takeaways from Super Micro Computer’s conference call:

• AI-driven growth accelerated: Fiscal 2026 revenue nearly doubled to $39.1 billion, while Supermicro received more than $60 billion in new Q4 orders and entered fiscal 2027 with record backlog.
• Profitability improved sharply in Q4. Non-GAAP gross margin rose to 17.6% from 10.1% in Q3, and non-GAAP EPS reached $1.70, well above guidance, driven mainly by favorable customer and product mix.
• Management forecast fiscal 2027 revenue of $65 billion to $72 billion and Q1 revenue of $14.5 billion to $15.5 billion, supported by continued AI demand, enterprise expansion, and growing data-center building-block solutions.
• Q4 revenue was near the low end of guidance because customers delayed deployments amid power, cooling, networking, and data-center readiness constraints. Inventory increased to $12.9 billion, the cash conversion cycle expanded to 149 days, and fiscal 2026 operating cash flow was negative $6.8 billion.
• The company is diversifying toward enterprise CPU servers, storage, IoT, agentic AI, and software/services to improve margins, but management acknowledged that Q4’s unusually strong margin benefited from one-time factors, including lower tariffs and inventory reserves.

Super Micro Computer Stock Up 0.4%

NASDAQ:SMCI opened at $31.60 on Wednesday. The company has a debt-to-equity ratio of 0.88, a current ratio of 2.66 and a quick ratio of 1.29. The company’s fifty day moving average price is $30.58 and its 200-day moving average price is $30.44. Super Micro Computer has a 1-year low of $19.48 and a 1-year high of $58.78. The firm has a market capitalization of $19.00 billion, a P/E ratio of 16.72, a PEG ratio of 0.37 and a beta of 1.95.

Key Super Micro Computer News

Here are the key news stories impacting Super Micro Computer this week:

• Positive Sentiment: Strong earnings beat: Fiscal fourth-quarter adjusted EPS was $1.70, well above the $0.92 consensus estimate and up from $0.41 a year earlier. Quarterly profit reached $1.17 billion, while revenue rose 93.2% year over year to $11.12 billion. Super Micro Stock Surges as Earnings Smash Expectations and Revive AI Hope
• Positive Sentiment: Upbeat forward guidance: Management forecast fiscal 2027 revenue of $65 billion to $72 billion, substantially above the $53.1 billion analyst estimate. First-quarter fiscal 2027 revenue guidance of $14.5 billion to $15.5 billion also exceeded the $12 billion consensus, while EPS guidance of $1.01 to $1.10 topped the $0.72 estimate. Super Micro forecasts upbeat annual revenue
• Positive Sentiment: AI demand outlook strengthened: Super Micro’s forecast, alongside an upbeat outlook from CoreWeave, supported the view that demand for AI computing capacity and infrastructure could remain strong. CoreWeave, Super Micro climb on signs of sustained AI buildout
• Neutral Sentiment: Revenue narrowly missed estimates: Reported revenue of $11.12 billion came in below the $11.60 billion consensus, despite the substantial year-over-year growth.
• Negative Sentiment: Margin and execution concerns remain: Analysts and market commentary continue to focus on whether Super Micro can sustain improved gross margins—reported at approximately 17.6%—as it scales rapidly. The company’s relatively low net margin of 3.7% leaves limited room for operational missteps. Supermicro stock is surging, but one number should still worry investors

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Raymond James Financial decreased their price objective on shares of Super Micro Computer from $45.00 to $39.00 in a research report on Friday, June 12th. CJS Securities raised shares of Super Micro Computer from a “market underperform” rating to a “market perform” rating in a research report on Wednesday, May 6th. Wedbush cut their price target on shares of Super Micro Computer from $42.00 to $34.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 6th. JPMorgan Chase & Co. raised their price target on shares of Super Micro Computer from $28.00 to $32.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Finally, Needham & Company LLC lifted their price objective on shares of Super Micro Computer from $40.00 to $46.00 and gave the stock a “buy” rating in a research note on Wednesday, July 22nd. Four investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $39.21.

Institutional Investors Weigh In On Super Micro Computer

Several hedge funds have recently added to or reduced their stakes in the business. CIBC Private Wealth Group LLC lifted its holdings in Super Micro Computer by 11.8% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 3,206 shares of the company’s stock worth $154,000 after buying an additional 339 shares during the period. Sunbelt Securities Inc. grew its position in shares of Super Micro Computer by 26.4% in the 3rd quarter. Sunbelt Securities Inc. now owns 1,870 shares of the company’s stock worth $90,000 after buying an additional 390 shares during the last quarter. Triumph Capital Management increased its stake in shares of Super Micro Computer by 6.1% during the third quarter. Triumph Capital Management now owns 8,700 shares of the company’s stock valued at $417,000 after buying an additional 500 shares during the period. Principal Securities Inc. raised its holdings in shares of Super Micro Computer by 6.9% during the fourth quarter. Principal Securities Inc. now owns 8,287 shares of the company’s stock valued at $243,000 after acquiring an additional 538 shares in the last quarter. Finally, Franklin Resources Inc. raised its holdings in shares of Super Micro Computer by 1.0% during the third quarter. Franklin Resources Inc. now owns 60,619 shares of the company’s stock valued at $2,906,000 after acquiring an additional 589 shares in the last quarter. 84.06% of the stock is owned by hedge funds and other institutional investors.

Super Micro Computer Company Profile

Super Micro Computer, Inc (Supermicro) is a technology company that designs, develops and manufactures high-performance server, storage and networking solutions for enterprise, cloud, data center, high performance computing (HPC) and edge computing customers. The company’s product portfolio includes rackmount and blade servers, storage subsystems, motherboards, chassis, power supplies and networking components, with an emphasis on high-density, energy-efficient configurations and platforms optimized for GPU-accelerated workloads and artificial intelligence applications.

Headquartered in San Jose, California, Supermicro combines in-house engineering with a global manufacturing and distribution footprint to deliver configurable, application-specific systems.